US PERM Suspension Could Have Far-Reaching Impact on India: Priyank Kharge

Karnataka IT and BT Minister Priyank Kharge on Friday said the US government’s suspension of the Permanent Labour Certification Programme (PERM) for major IT outsourcing companies could have complex and far-reaching implications for India’s technology sector.

Kharge said the move could raise operating costs for Indian IT companies in the United States, complicate the retention of skilled employees and limit their flexibility in deploying Indian professionals to onsite roles. PERM is a key step in the employment-based green card process for eligible foreign workers, including some H-1B visa holders.

However, the minister said the development could also create opportunities for India by encouraging global companies to expand high-value technology operations within the country.

“If moving Indian engineers to the United States becomes more difficult and expensive, more high-value work may increasingly move to where the talent already is available,” Kharge said.

He noted that the shift could accelerate the growth of Global Capability Centres (GCCs) in India and prompt multinational companies to assign more research and development (R&D), engineering and product development work to Indian cities.

The development could also boost domestic demand for senior technology professionals and strengthen India’s position in the global technology ecosystem, he said.

Kharge said India had an opportunity to move beyond its established position as a major IT services provider and emerge as a global hub for product development, artificial intelligence (AI), deep technology and innovation.

He added that the implications of the US decision could extend beyond the immediate challenges facing Indian IT outsourcing companies, potentially influencing how multinational technology firms distribute their operations and specialised work across countries.

While the suspension could create short-term difficulties for Indian IT service providers with substantial US operations, Kharge said the changing environment could encourage companies to expand higher-value technology functions in India, leveraging the country’s existing pool of skilled professionals.

The development could therefore become a factor in shaping India’s role in global research, engineering and technology innovation, even as companies assess the operational and workforce implications of the US move.